By Raechel Fraser | Associate | Burlington / Mount Vernon and Marysville Offices
When you buy insurance, you do it for the protection and security of yourself, your family, and your property. An insurance contract is the insurance company’s promise to you to follow through on the guarantee of protection and security. Unfortunately, insurance companies do not always keep their promises.
After an accident, injury, or dispute, you may be presented with paperwork called a “release of liability” or “agreement and release.” It can be tempting to sign it right away just to move things along. You may be told it’s “just a formality” or that signing will help you get your payment faster. But what many people don’t realize is that signing a release can have serious, long-term consequences.
Once your signature is on that document, you may be permanently giving up your right to pursue further compensation, even if new injuries or damages appear later. Before you put pen to paper, it’s essential to understand exactly what you are agreeing to and how it could affect your future. To make sure you receive the full compensation you deserve, consult with an experienced personal injury attorney before signing any third-party releases.
What is a Release of Liability?
A release of liability, also known as a waiver, is a legal agreement where one party (often you) agrees not to hold another party legally responsible for any injuries, damages, or losses that occur as a result of a specific event, activity, or incident.
By signing this document, you are waiving your right to pursue legal claims or file a lawsuit for issues covered by the release. This can apply to personal injuries, property damage, or other potential claims that may arise later.
Key Reasons Why You Should Consult an Attorney First
1. You Could Be Giving Up More Than You Realize
Releases of liability are often written broadly and in dense legal language. You might think you are only waiving claims related to a specific incident. In reality, you could be signing away your right to pursue any future claims connected to the same event, even if new injuries or damages surface later.
For example, imagine you were injured in a car accident and the insurance company offers you a quick settlement. You sign a release, thinking it covers your current medical bills. A few months later, you develop complications that require additional treatment. Unfortunately, if your release included language covering “all known and unknown injuries,” you may no longer have any legal recourse to recover those new expenses.
2. You Might Settle for Less Than You Deserve
Insurance companies and other liable parties often use releases as part of settlement agreements. Their goal is typically to resolve the claim quickly and for as little money as possible.
While the initial offer might seem fair or even generous, it may not reflect the true value of your damages. A personal injury lawyer can help you assess the full extent of your losses, including:
- Current and future medical expenses
- Lost income and diminished earning capacity
- Long-term rehabilitation or therapy costs
- Pain, suffering, and emotional distress
By evaluating your case comprehensively, your attorney ensures that you are not pressured into accepting a settlement that fails to cover your future needs.
3. You Could Face Unintended Insurance Consequences
Signing a release can also impact your insurance coverage in ways that aren’t immediately obvious. Some insurance policies contain clauses that restrict or deny coverage if you have waived certain rights.
If you later file an insurance claim related to the same event or injury, the insurer may deny payment on the grounds that you already released another party from liability. In essence, your signature on that release could jeopardize your ability to recover compensation from your own insurance policy.
A lawyer can review your policy and the proposed release to ensure that signing the document won’t inadvertently limit your coverage or future claims.
4. You May Be Agreeing to Unfair or Unconscionable Terms
Not all releases are created equal. Some contain unconscionable provisions clauses that are so one-sided or unfair that they overwhelmingly benefit the other party. For example, a release might:
- Require you to give up all rights to sue, no matter the circumstances
- Impose harsh penalties for minor breaches
- Include hidden indemnification clauses, making you financially responsible for the other party’s costs
Although courts sometimes refuse to enforce such terms, this is not guaranteed. Having a personal injury attorney review the documents before you sign them can help identify these red flags and protect your legal interests.
5. You Have the Right to Negotiate the Terms
You are not obligated to sign a release exactly as written. If certain terms seem unfair, a personal injury lawyer can negotiate revisions on your behalf. Sometimes, even small changes, such as limiting the scope of the waiver or clarifying what claims are being released, can make a big difference in protecting your rights.
Contact a Personal Injury Attorney Today
A third-party release of liability may seem like a routine formality, but its consequences can be far-reaching. Once you sign, your options for pursuing compensation or asserting your legal rights may be permanently limited. Before you sign any release or settlement agreement, take the time to consult with an experienced personal injury attorney.
GLP Attorneys is home to a deep bench of knowledgeable attorneys with decades of experience handling insurance bad faith claims. Call us today at 800.273.5005, or email our attorneys at for a free consultation.
